In contemporary conditions of business and strong competition, quality has a startegic meanaing for organization and its positioning on the market. In this reasrch work, there is association between sistematic aproach to quality and competitive advantages. Competitive surrounding can have crucial role in detaining existing customers, but there is also possibility of gaining attention from the new ones. Some sources of competitive advantages are represented, possibilities of keeping this advantages and expenses related to quality. Preseting comprehensive sistem of total quality mamagement is not all there is to it. Harsh criticisms are directed to total quality management in the terms of its unsteadiness and prognosis of colapsing. Total quality managementi is the most demanding of all the sistems of quality manageing because it demands numerous changes of organization and building quality into every and each process of business. Total quality management is often associated to concept of business excellance. Croatiaˈs view of quality is put into relation to competitiveness of other countries in the region.